Supplementary Provisions, Article 5Transitional Measures Concerning Tax Rates, etc. for Books, etc. Sold by Subscription

①Where a business operator, with respect to books or other goods it transfers under a contract concluded before April 1, 2019 (referred to as the "designated day" in paragraphs (3) and (4)) that promises to supply them regularly and continuously to an unspecified and large number of persons, has received before the Effective Date all or part of the consideration for that transfer provided in that contract, and makes on or after the Effective Date the transfer of the books or other goods to which the receipt of that consideration relates, the tax rate prescribed in Article 29 of the Consumption Tax Act before the amendment by the provisions of Article 3 of the Amending Act (hereinafter referred to as the "Former Act") applies to the consumption tax on the taxable transfer, etc. of assets of the portion relating to the consideration so received among the taxable transfers, etc. of assets relating to those books or other goods; provided, however, that this does not apply to a taxable transfer, etc. of assets to which the provisions of Article 5, paragraph (1) of the Supplementary Provisions of the Cabinet Order Partially Amending the Order for Enforcement of the Consumption Tax Act (Cabinet Order No. 56 of 2013; referred to as the "2013 Amending Cabinet Order" in the proviso to paragraph (3)) apply.

②Where a business operator transfers a specified newspaper (meaning, among newspapers issued regularly at periodic intervals such as weekly or monthly to an unspecified and large number of persons for which the issuer designates the day of sale, one for which the designated day is before the Effective Date) on or after the Effective Date, the tax rate prescribed in Article 29 of the Former Act applies to the consumption tax on the transfer of that specified newspaper.

③Where a business operator that sells goods by the method of mail order sale (meaning the sale of goods in which the content of the goods, the sales price and other conditions are presented to an unspecified and large number of persons, an offer to enter into a sales contract is received by mail, telephone or other means, and the sale is made in accordance with the conditions so presented; excluding sales relating to the contract prescribed in paragraph (1)) has presented those conditions, or has completed preparations to present them, before the designated day, and sells goods on or after the Effective Date in accordance with the conditions so presented in response to an offer received before the Effective Date, the tax rate prescribed in Article 29 of the Former Act applies to the consumption tax on the sale of those goods; provided, however, that this does not apply to a taxable transfer, etc. of assets to which the provisions of Article 5, paragraph (3) of the Supplementary Provisions of the 2013 Amending Cabinet Order apply.

④Where a business operator, under a lifetime residency contract for a fee-based home for the elderly prescribed in Article 29, paragraph (1) of the Act on Social Welfare for the Elderly (Act No. 133 of 1963) (meaning a contract under which, based on the contract, the counterparty to the contract acquires the right to reside in the fee-based home for the elderly for life by paying a lump sum when moving into the fee-based home for the elderly) concluded during the period from October 1, 2013 to the day preceding the designated day, under which the consideration for the provision of services relating to nursing care during the period of residency (excluding what falls under a transfer, etc. of assets listed in Appended Table 1, item (vii) of the Consumption Tax Act) is paid as a lump sum at the time of moving in, and under which there is no provision that the business operator may request a change in the amount of that lump sum due to a change in circumstances or for any other reason, has been continuously making, from before the Effective Date through on or after the Effective Date, a transfer, etc. of assets relating to that contract (meaning a transfer, etc. of assets prescribed in Article 2, paragraph (1), item (viii) of the Consumption Tax Act; the same applies in paragraph (1) of the following Article and Article 8, paragraph (1) of these Supplementary Provisions), the tax rate prescribed in Article 29 of the Former Act applies to the consumption tax on the provision of those services made on or after the Effective Date (limited to the portion corresponding to that lump sum); provided, however, that where the amount of that lump sum is changed on or after the designated day, this does not apply to the provision of those services made after the change.

⑤Where a manufacturer, etc. prescribed in Article 4 of the Act on Recycling of Specified Kinds of Home Appliances (Act No. 97 of 1998) or a designated corporation prescribed in Article 32, paragraph (1) of that Act has received before the Effective Date the consideration for the recycling, etc. of specified kinds of home appliance waste prescribed in Article 18, paragraph (1) of that Act or for the affairs listed in Article 33, item (ii) of that Act (including where a retailer prescribed in Article 5 of that Act has received it before the Effective Date pursuant to Article 12 of that Act), and makes on or after the Effective Date the taxable transfer, etc. of assets relating to the receipt of that consideration, the tax rate prescribed in Article 29 of the Former Act applies to the consumption tax on that taxable transfer, etc. of assets.

⑥With regard to the application of Article 38, paragraph (1) and Article 39, paragraph (1) of the New Act to a taxable transfer, etc. of assets to which the main clause of paragraph (1), paragraph (2), the main clause of paragraph (3), the main clause of paragraph (4) or the preceding paragraph applies, in Article 38, paragraph (1) of the New Act, the phrase "10 percent" is deemed to be replaced with "8 percent" and the phrase "7.8/110" with "6.3/108", and in Article 39, paragraph (1) of the New Act, the phrase "7.8/110" is deemed to be replaced with "6.3/108".

⑦Where a business operator takes a transfer of assets relating to a taxable transfer, etc. of assets to which the provisions of the main clause of paragraph (1), paragraph (2), the main clause of paragraph (3) or paragraph (5) applied, from a business operator to which those provisions applied, or receives provision of services relating to that taxable transfer, etc. of assets, with regard to the application of Article 30, paragraph (1), Article 32, paragraph (1) and Article 36, paragraph (1) of the New Act, the phrase "7.8/110" in those provisions is deemed to be replaced with "6.3/108".